HomeMy WebLinkAboutOrdinance 2600 I�k JL'U .
ORDINANCE NO , Oo �U u,� C �Cv1 Y ,4
t �; fR
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENE ..
OBLIGATION IMPROVEMENT BONDS FOR THE PURPOSE OF
FINANCING THE COST OF IMPROVEMENTS TO THE CITY
HOSPITAL ; LEVYING A TAX SUFFICIENT TO PAY THE
PRINCIPAL OF AND INTEREST ON THE BONDS ; PRESCRIBING
OTHER MATTERS RELATING THERETO ; AND DECLARING AN
EMERGENCY .
MICR ® FILMED
WHEREAS , the City of Fayetteville , Arkansas , is a city
of the first class ( the " City " ) ; and
WHEREAS , by Ordinance No . 2566 , duly passed by the Board
of Directors of the City , and approved on the 42 LJ' day of
1979 , there was submitted to the qualified electors of the City
the question of issuing , under Amendment No . 13 to the Constitution
of the State of Arkansas , General Obligation Improvement Bonds
in the principal amount of $ 1 , 376 , 000 ( the " bonds " ) for the purpose
of financing the cost of improvements to the City ' s Hospital ( the
" improvements " ) , paying necessary expenses incidental thereto and
paying the expenses of issuing the bonds ; and
WHEREAS , at a special election held November 6 , 1979 ,
a majority of the electors voting on the question approved the
issuance of the bonds ; and
WHEREAS , the results of the election were announced by
the Mayor by a Proclamation duly published in a newspaper of bona
fide circulation in the City ;
NOW , THEREFORE , BE IT ORDAINED by the Board of Directors
of the City of Fayetteville , Arkansas :
Section 1 . That the improvements be accomplished .
Section 2 . That the sale of the bonds , as set forth below ,
be , and the same is hereby , approved and authorized .
Section 3 . That under the authority of the Constitution
and laws of the State of Arkansas , including particularly Amendment
No . 13 to the Constitution of the State of Arkansas , City of Fayette-
ville , Arkansas General Obligation Improvement Bonds are hereby
NC CFIIMED
DATE APR 3 1980
REEL
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authorized and ordered issued in the total principal amount of
$ 1 , 376 , 000 , the proceeds of the sale of which are necessary to
provide sufficient funds for accomplishing the improvements .
The bonds shall be dated January 1 , 1980 and shall mature on
January 1 in each of the years 1983 to 2002 , inclusive , as set
forth in the Notice of Sale , below . The bonds shall be sold for
the best bid obtainable , upon the terms and as set forth in the
Notice of Sale of substantially the form as follows :
® 1" 9 358
NOTICE OF SALE
$ 1 , 376 , 000
CITY OF FAYETTEVILLE , ARKANSAS
GENERAL OBLIGATION IMPROVEMENT BONDS _
DATED JANUARY 1 , 1980
The City of Fayetteville , Arkansas ( the " City " ) , gives
notice that there will be sold on sealed bids at
. m . , local time
1980
$ 1 , 376 , 000 City of 'Fayetteville , Arkansas General Obligation Improve-
ment Bonds ( the " bonds " ) being issued under Amendment No . 13 to the
Constitution of the State of Arkansas .
The bonds will be dated January 1 , 1980 . Interest will be
payable July 1 , 1980 and semiannually thereafter on January 1 and
July 1 of each year . The bonds will mature - on January 1 of each
year as follows ( but shall be subject to redemption prior to maturity
as hereinafter set forth ) :
YEAR AMOUNT
1983 $ 36 , 000
1984 40 , 000
1985 40 , 000
1986 45 , 000
1987 45 , 000
1988 50 , 000
1989 55 , 000
1990 55 , 000
1991 60 , 000
1992 65 , 000
1993 65 , 000
1994 70 , 000
1995 75 , 000
1996 801000
1997 85 , 000
1998 90 , 000
1999 95 , 000
2000 100 , 000
2001 110 , 000
2002 115 , 000
Issuance of the bonds was approved by the electors of the
City at a special election . The bonds are being issued for the pur -
pose of financing the cost to the City of constructing improvements
to the City ' s Hospital .
X1;09 359
The bonds are general obligations of the City , and the
City pledges to the payment of the bonds its full faith , credit and
taxing power , including particularly collections of a continuing
annual special tax of two mills ( the " special tax " ) on the assessed
valuation of all the taxable real and personal property located in
the City .
The bonds will be subject to redemption prior to maturity
(mandatory from surplus tax collections ( defined below ) and optional
from other sources ) in inverse numerical order at a price of par
and accrued interest as follows :
( 1 ) From surplus collections of the special tax on any
interest payment date ;
( 2 ) From funds from any source on any interest payment
date on and after January 1 , 1985 .
The amount of the interest payments ( due July 1 , 1980 ,
January 1 , 1981 and July 1 , 1981 ) will be provided for from the pro -
ceeds of the sale of the bonds . The City reserves the right to reim-
burse the bond proceeds in that amount from the first available col -
lections of the special tax .
The City will covenant that , subject to the conditions set
forth below , surplus tax collections , being collections from the
special tax in excess of the amount necessary to insure the prompt
payment of the principal of , interest on , and trustee ' s and paying
agent ' s fees in connection with the bonds as the same become due , must
be used from time to time on each interest payment date , as and to
the extent available , to redeem outstanding bonds prior to maturity .
There will be such mandatory redemption to the extent that the total
interest cost to the City for the period of the projected payout on
the basis of the mandatory call does not exceed the interest cost
® 1J39 360
that would result from an interest rate of 6 % per annum for the
period of the projected payout on the money received by the City .
In determining the extent of such mandatory redemption , it will be
assumed ( 1 ) that collections of the special tax will be at the rate
of 100 % , ( 2 ) that the same ( 1979 ) assessed valuation will continue
and ( 3 ) that the principal added by the conversion constitutes in-
terest . Redemption on interest payment dates from surplus tax collec-
tions in excess of such mandatory redemption will be optional . Under
the law , however , all collections of the special tax must be used for
payment of debt service on the bonds at maturity or redemption prior
to maturity and can be used for no other purpose .
Supplemental and dual coupons will not be permitted , but
the purchaser shall have the privilege of converting the bonds to
an issue bearing a lower rate or rates of interest , with any conver-
sion to be upon such terms that the City receive no less and pay no
more than it would receive and pay if the bonds were not converted ,
to be ' subject to the approval of the City ' s Board of Directors , and
to be subject to the following conditions :
1 . Any conversion shall be in accordance with
the Universal Bond Values Tables ;
2 . The average maturities may not be shortened
by more than six months ;
3 . The difference between the highest rate of
interest and the lowest rate of interest in
the converted schedule may not exceed 1 % ;
4 . The difference between the rate bid and the
lowest rate of interest in the converted
schedule may not exceed 1 % ; and
5 . All bonds maturing on the same date shall
bear the same rate of interest .
Each bidder shall specify one rate of interest . No bid
of less than par plus accrued interest will be entertained . The
award , if made , will be to the bidder whose bid results in the
lowest net interest cost to the City , determined by computing the
total interest at the rate bid from the date of the bonds to maturity
and deducting therefrom the amount of any premium bid .
The purchaser may name the Trustee and Paying Agent for
the bonds . All expenses of the issue , including the Trustee ' s authen-
tication fee , printing of the bonds and the fee of Friday , Eldredge —
& Clark , Bond Counsel , will be paid by the City .
No contingent provisions may be included in the bids , and
the City reserves the right to reject any and all bids .
Sealed bids will be received until the date and time speci -
fied above . All bids will be opened on that date and at that time
in the Board of Directors Chambers , City Hall , Fayetteville , Arkansas
72442 . All bids must be enclosed in a sealed envelope addressed to
the Mayor of the City and plainly marked on the outside " Proposal
for $ 1 , 376 , 000 City of Fayetteville , Arkansas General Obligation
Improvement Bonds , dated January 1 , 1980 . " There must be enclosed
with each bid a certified or cashier ' s check in the amount of $ 27 , 520
payable to the City to be kept as liquidated damages if the bidder
is awarded the sale of the bonds and fails to complete the purchase .
Checks of unsuccessful bidders will be promptly returned , but the
City will not pay interest on good faith checks .
All bids must be on the Official Bid Form . The bonds will
be delivered to the purchaser within sixty ( 60 ) days from the date
of the sale . Delivery shall be at any location in the State of
Arkansas , selected by the purchaser , or , at the expense of the pur-
chaser , at another location selected by the purchaser .
Additional information , copies of the Official Statement
and of the Official Bid Forms may be obtained from the undersigned
or Bond Counsel .
GIVEN this day of 1980 .
CITY OF FAYETTEVILLE , ARKANSAS
By /s/ Scott C . Linebau h
Mayor
INSTRUCTIONS : Publish once a week for three consecutive weeks in a
local newspaper with the first publication to be at least twenty ( 20 )
days prior to the date of sale . Please send a copy of the first pub-
lication to Friday , Eldredge & Clark , The First National Building ,
Twentieth Floor , Little Rock , Arkansas 72201 , and furnish three
proofs of publication after the required three publications .
® � Joy
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The Mayor is authorized to publish the Notice of Sale
and to execute such writings and take such action as shall be inci -
dental or appropriate to the sale of the bonds and the implementa -
tion of the powers and the accomplishment of the purposes hereof .
The successful bidder for the bonds may , subject to approval of the
City , name the Trustee and Paying Agent for the bonds , and the Board
of Directors will adopt a resolution approving the Trustee and
Paying Agent and the details of the bonds as they are being issued ,
such as the purchase price , rates of interest , denomination , bond
numbers , and annual and semiannual principal and interest requirements.
Section 4 . That the bonds shall be executed on behalf
of the City by the Mayor and City Clerk (with the facsimile
signature of the Mayor and the manual signature of the City
Clerk ) and shall have impressed thereon the seal of the City .
Interest coupons shall be executed by the facsimile signature of
the Mayor . The facsimile signature of the Mayor on the bonds and
coupons shall have the same force and effect as if he had personally
signed each of the bonds and coupons ,
Section 5 . That the bonds and coupons shall be in
substantially the following form :
® 1lu33 363
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
% GENERAL OBLIGATION IMPROVEMENT BOND
No .
KNOW ALL MEN BY THESE PRESENTS :
That the City of Fayetteville , Washington County , Arkansas
( the " City " ) , acknowledges itself to owe and for value received
promises to pay to bearer , or if this bond be registered , to the
registered owner hereof , the sum of
DOLLARS
in lawful money of the United States of America on the first day
of January , , and to pay interest hereon at the rate of
percent ( % ) per annum from date
until paid . Interest is payable semiannually on January 1 and July 1
of each year , commencing July 1 , 1980 . Payment of principal ,
and payment of interest when evidenced by coupons , shall be made
upon presentation of the bonds and coupons at the principal
office of ( the
" Trustee " and " Paying Agent " ) . Payment of interest when registered
as to interest shall be by check or draft mailed to the registered
owner at his address reflected on the registration book of the
City maintained by the Trustee as Bond Registrar .
This is one of an issue of bonds , aggregating
$ dated Janaury 1 , 1980 , and numbered from 1 to ,
inclusive , all of like tenor and effect except as to number ,
denomination , rate of interest , maturity and right of prior redemp-
tion . The bonds are issued for the purpose of financing the
cost of the construction of improvements to the City ' s Hospital ,
paying necessary expenses incidental thereto and paying the expenses
of issuing the bonds .
® 1003 364
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The bonds are issued pursuant to and in full compliance
with the Constitution and laws of the State of Arkansas , particularly
Amendment No . 13 to the Constitution of the State of Arkansas , and _
pursuant to Ordinance No , of the City , passed and approved on
the day of , 1980 ( the "Authorizing Ordinance " ) ,
and an election duly held at which the majority of the legal voters
of the City voting on the question voted in favor of the issuance
of the bonds . Reference is hereby made to the Authorizing Ordinance
for the details of the nature and extent of the security and of the
rights and obligations of the City and the holders and registered
owners of the bonds . The bonds are general obligations of the
City , payable from the proceeds of a continuing annual two mill
special tax ( the " special tax " ) levied by the City under the authority
of Amendment No . 13 to the Constitution of the State of Arkansas ,
and the City hereby pledges its full faith , credit and taxing
power , including the special tax , for the payment of this bond .
The bonds are subject to redemption prior to maturity
(mandatory from surplus tax collections ( defined below ) and optional
from other sources ) in inverse numerical order at a price of par
and accrued interest as follows :
( 1 ) From surplus collections of the special tax on any
interest payment date ;
( 2 ) From funds from any source on any interest payment
date on and after January 1 , 1985 .
The amount of the interest payments ( due July 1 , 1980 ,
January 1 , 1981 and July 1 , 1981 ) will be provided for from the pro -
ceeds of the sale of the bonds . The City reserves the right to reim-
burse the bond proceeds in that amount from the first available col-
lections of the special tax .
The City covenants that , subject to the conditions set
forth below , surplus tax collections , being collections from the
special tax in excess of the amount necessary to insure the prompt
® IOC3 365
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payment of the principal of , interest on , and trustee ' s and paying
agent ' s fees in connection with the bonds as the same become due , must
be used from time to time on each interest payment date , as and to
the extent available , to redeem outstanding bonds prior to maturity .
There will be such mandatory redemption to the extent that the total
interest cost to the City for the period of the projected payout on
the basis of the mandatory call does not exceed the interest cost
that would result from an interest rate of 6 % per annum for the
period of the projected payout on the money received by the City .
In determining the extent of such mandatory redemption , it will be
assumed ( 1 ) that collections of the special tax will be at the rate
of 1000 , ( 2 ) that the same ( 1979 ) assessed valuation will continue
and ( 3 ) that the principal added by the conversion constitutes in-
terest . Redemption on interest payment dates from surplus tax collec -
tions in excess of such mandatory redemption will be optional . Under
the law , however , all collections of the special tax must be used for
payment of debt service on the bonds at maturity or redemption prior
to maturity and can be used for no other purpose .
Notice . of the call for redemption shall be published one
time in a newspaper published in the City of Little Rock , Arkansas ,
and having a general circulation throughout the State of Arkansas ,
giving the number and maturity of each bond being called , the publi -
cation to be at least fifteen ( 15 ) days prior to the redemption
date , and after the date fixed for redemption each bond so called
shall cease to bear interest , provided funds for its payment are on
deposit with the Paying Agent at that time . In addition , notice by
registered or certified mail shall be mailed , fifteen ( 15 ) days
prior to the redemption date , to the registered owner of each bond
registered as to principal at the address of such owner reflected on
the bond registration book of the Bond Registrar , and if all outstanding
bonds shall be registered as to principal , notice by registered or
certified mail to the registered owners thereof shall be sufficient ,
and it shall not be necessary to publish notice of the call .
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This bond may be registered as to principal or as to
principal and interest and may be discharged from such registration
in the manner , with the effect and subject to the terms and conditions
endorsed hereon . Subject to the provisions for registration endorsed
hereon , nothing contained in this bond or in the Authorizing Ordinance
shall affect or impair the negotiability of this bond and this bond
shall be deemed a negotiable instrument under the laws of the State
of Arkansas and is issued with the intent that the laws of the State
of Arkansas will govern its construction .
IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all
acts , conditions and things required to exist , happen and be performed ,
under the Constitution and laws of the State of Arkansas , particularly
Amendment No . 13 to the Constitution of the State of Arkansas ,
precedent to and in the issuance of this bond have existed , have
happened and have been performed in ' due time , form and manner as
required by law ; that the indebtedness represented by this bond and
the issue of which it forms a part does not exceed any constitu-
tional or statutory limitation ; and that a tax sufficient to pay the
bonds and interest thereon has been duly levied in accordance with
Amendment No . 13 to the Constitution of the State of Arkansas and
made payable annually until all of the bonds and interest thereon
have been fully paid and discharged .
This bond shall not be valid until it shall have been
authenticated by the Certificate hereon duly signed by the Trustee .
IN WITNESS WHEREOF , the City of Fayetteville , Arkansas ,
has caused this bond to be executed in its name by the facsimile
signature of the Mayor , the manual signature of the City Clerk and
its corporate seal to be affixed and has caused the coupons hereto
attached to be executed by the facsimile signature of its Mayor , all
as of the first day of January , 1980 .
CITY OF FAYETTEVILLE , ARKANSAS
ATTEST :
By ( facsimile signature )
Mayor
City Clerk
( SEAL )
�sa� 69 367
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( form of coupon )
No . $
On the first day of ( January ) ( July ) , 19_ , the City of —
Fayetteville , Washington County , Arkansas , unless the bond to which
this coupon is attached is paid prior thereto , hereby promises to
pay to bearer
DOLLARS
in lawful money of the United States of America at the principal
office of , being six
( 6 ) months interest then due on its General Obligation Improvement
Bond , dated January 1 , 1980 , and numbered
CITY OF FAYETTEVILLE , ARKANSAS
By ( facsimile signature )
Mayor
On each bond shall appear the following :
CERTIFICATE
This is to certify that this is one of the City of
Fayetteville , Arkansas General Obligation Improvement Bonds , dated
January 1 , 1980 , mentioned and described within .
TRUSTEE
By
Authorized Signature